Central Bank of Chile

September 15, 2016

Chile’s central bank Board left its policy interest rate at 3.5%, the level since a 25-basis point increase in December 2015. That was the second of two hikes, the first coming a year ago in September 2015. Economic data released since the Board last rate announcement on August 11 have not surprised officials, according to their released statement. Inflation is dropping, and expected inflation two years from now conforms to the targeted 3.0%. Output and demand appear to be growing lately at a “limited” pace. Confidence levels signal pessimism, and the labor market has deteriorated gradually. The statement is non-committal about the timing and direction of the next rate change.

Copyright 2016, Larry Greenberg. All rights reserved. No secondary distribution without express permission.



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